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Article Description: By Mary Jo Foley - A look at the 16 different division of Microsoft that each bring in > 1 Billion in revenue.

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Content: use HTML Edit Content <h1 style="text-align: center;">microsofts 16 billion dollar businesses</h1> <h2>[WHAT]</h2> <ol> <li>] Mary Jo Foley @zdnet compiled <a href="http://www.zdnet.com/microsofts-16-billion-dollar-businesses-an-updated-list-7000019346/" target="_blank">a listing of the 16 different lines of business</a> that microsoft has that are generating annual revenues of $ 1 Billion(B) per year or greater</li> <li>] LIST (16) - is below, i have re-ordered it alphanumerically, *Android Patent Licencing were not sure about,</li> <ol> <li>UPDATE - Skype has been added</li> <li>UPDATE - Phones has been added after the Nokia aquisition of 2014</li> </ol> <li>] next i will attempt to put/group/categorize each of the different LOB's into 1 of <span style="text-decoration: underline;">msft's financial reporting categories</span> that they use,</li> <li>] this should provide some guidance in looking at msft financial reports to get an idea of the revenue/costs associated with each of its different LOB</li> </ol> <h2>[WHY]</h2> <ol> <li>x*] Android Patent licencing - thanks google!</li> <li>] azure - cloud services</li> <li>x] bing (online advertising) -</li> <li>] client access licence</li> <li>x] dynamics (CRM, ERP)</li> <li>x] enterprise communications -&nbsp;exchange + lync</li> <li>x] enterprise services - includes consulting</li> <li>x] office - software licences</li> <li>x] office 365 - subscriptions online</li> <li>x] sharepoint -</li> <li>x] sql server -</li> <li>x] system center -</li> <li>x] visual studio - and other developer tools,</li> <li>] windows - (included surface hardware revenues)</li> <li>] windows server -</li> <li>x] xbox -</li> <li>+] Skype -</li> <li>?] Phones</li> </ol> <h2>[WHERE]</h2> <ol> <li>] <a href="http://www.zdnet.com/microsofts-16-billion-dollar-businesses-an-updated-list-7000019346/" target="_blank">http://www.zdnet.com/microsofts-16-billion-dollar-businesses-an-updated-list-7000019346/</a></li> </ol> <h2>[WHEN]</h2> <ol> <li>] 2013-08-13</li> </ol> <h2>[EXAMPLE]</h2> <ol> <li>] in 2010 msft had 8 business lines that generated &gt; 1B in revenue</li> <li>] in 2013 msft has 16 business lines that generated &gt; 1B in revenue</li> </ol> <h2>[HOW-TO]<strong></strong></h2> <ol> <li><strong>] mapping the 16 B dollar businesses to their respective msft financial reporting division,</strong></li> <ol> <li>&nbsp;items <em>in italics</em> are reported in multiple divisions, includes NON B businesses in</li> </ol> <li><strong>Devices+Consumer - hardware -&nbsp;</strong></li> <ol> <li><span style="text-decoration: line-through;">] other ( mice + keyboards)</span></li> <li>] phones ( new in 2014 with nokia aquisition, hardware, phone os licencing)</li> <li>*] surface ( prev. included in windows)</li> <li>] xbox (include xbox hardware, live subscriptions, games 2nd/3rd party)</li> </ol> <li><strong>Devices+Consumer - licencing -&nbsp;</strong></li> <ol> <li>] office sw</li> <li>] office sub</li> <li>] visual studio</li> <li>] windows ( includes OEM, academic and retail)</li> </ol> <li><strong>Devices+Consumer - other -&nbsp;</strong></li> <ol> <li>] Bing (online ads)</li> <li><em>] xbox ( games 1st party, ?marketplaces?)</em></li> </ol> <li><strong>Commercial - Licencing&nbsp;</strong></li> <ol> <li>] Android patents</li> <li>] Ent communication - exchange, lync</li> <li>] sharepoint -</li> <li>] sql server -</li> <li>] system center -</li> <li><em>] visual studio</em></li> <li><em>] office sw </em></li> <li><em>] windows <br /></em></li> <li>] windows server</li> </ol> <li><strong>Commercial - Other</strong></li> <ol> <li>] Azure</li> <li>] Dynamics</li> <li>] Enterprise services - consulting</li> <li><em>] office sub</em></li> </ol> <li><strong>Commercial - Corporate &amp; Other</strong></li> <ol> <li><em>] Azure</em> - ?? Product Transactional and multi year licencing ??</li> </ol></ol> <p>&nbsp;</p> <h2>[REFERENCE]</h2> <ol> <li><strong>] define: revenue</strong></li> <ol> <li>] is the net income (total sales) generated, not the profit of the division, but the gross sales revenue that the business line brings in&nbsp;</li> </ol> <li><strong>] this was prior to the companies <a href="http://www.zdnet.com/demystifying-microsofts-new-financial-reporting-structure-7000021229/" target="_blank">2013-09 reorganization</a> of it's financial reporting methodology,</strong> the re-org was either to clarify or confuse the way msft reported it's earnings/losses by it's specific product divisions. The five new reporting divisions are as follows ...</li> <ol> <li>Devices+Consumer - hardware -</li> <li>Devices+Consumer - licencing -</li> <li>Devices+Consumer - other -&nbsp;</li> <li>Commercial - Licencing -</li> <li>Commercial - Other -</li> <li>Commercial - Corporate &amp; Other -</li> </ol></ol>